Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — FY2015 Earnings Presentation
30 slides from Bhp's earnings presentation, Aug 26, 2015
Slide 1: Financial results Year ended 30 June 2015
Yandi Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer Peter Beaven Chief Financial Officer 25 August 2015 bhpbilliton resourcing the future
Slide 2: Disclaimer
Disclaimer bhpbilliton resourcing the future Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or di
Slide 3: Financial results Year ended 30 June 2015
Spence Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer 25 August 2015 bhpbilliton resourcing the future
Slide 4: Our unique portfolio will create value and underpin dividends through the cycle
Our unique portfolio will create value and underpin dividends through the cycle bhpbilliton resourcing the future Asset quality and operating performance support margins and cash flow net operating cash flow of US$17.8 billion and EBITDA margin of 50% US$4 billion productivity target achieved two ye
Slide 5: The health and safety of our people is our priority
The health and safety of our people is our priority bhpbilliton resourcing the future Despite our goal to achieve zero fatalities, tragically we lost five colleagues in FY15 Total Recordable Injury Frequency (TRIF) (number of recordable injuries per million hours worked1) 10 8 6 4 2 0 down 53% FY06
Slide 6: Strong margins underpin robust cash flow
Strong margins underpin robust cash flow bhpbilliton resourcing the future Underlying EBITDA US$21.9 billion, down 28% Underlying attributable profit US$6.4 billion, down 52% Net operating cash flow US$17.8 billion, down 25% Capital and exploration expenditure1 US$11.0 billion, down 24% Free cash fl
Slide 7: Record production volumes
Record production volumes bhpbilliton resourcing the future Production1 from our core portfolio2 grew by 27% over the last two years - record Western Australia Iron Ore production of 254 Mt3 - record metallurgical coal production of 43 Mt - record petroleum production of 256 MMboe with a 67% increas
Slide 8: Sustainably lowering unit costs
Sustainably lowering unit costs bhpbilliton resourcing the future Over US$10 billion of annualised productivity-led gains1 delivered so far - US$4 billion target achieved two years ahead of schedule - unit costs reduced by >30% from their peak We expect to cut costs even further in FY16 - WAIO unit
Slide 9: Financial results Year ended 30 June 2015
Macedon bhpbilliton resourcing the future Financial results Year ended 30 June 2015 Peter Beaven Chief Financial Officer 25 August 2015
Slide 10: Resilient in a challenging environment
Resilient in a challenging environment bhpbilliton resourcing the future Underlying EBIT variance (US$ billion) 27.0 Uncontrollable (-US$14.0 billion) Controllable (+US$3.8 billion) 22.1 18.0 2.7 0.5 1.2 (1.3) 11.9 1.8 (1.1) 1.6 9.0 8.1 (0.4) (15.2) 0.0 FY15 FY14 Price1 Exchange Inflation Sub-total
Slide 11: Petroleum: strong operating performance
Petroleum: strong operating performance bhpbilliton resourcing the future Production increased by 4% to a record 256 MMboe, supported by a 67% increase in Onshore US liquids The rise in non-cash costs reflects higher depreciation and amortisation charges in Onshore US and impairment charges associat
Slide 12: Copper: improved efficiencies and lower costs
Copper: improved efficiencies and lower costs bhpbilliton resourcing the future A 14% decline in unit cash costs1 at our operated copper assets partially offset price weakness Higher non-cash charges largely reflected a US$199 million impairment at Cerro Colorado, higher depletion of capitalised str
Slide 13: Iron Ore: exceptional margins through the cycle
Iron Ore: exceptional margins through the cycle bhpbilliton resourcing the future WAIO production increased by 13% to a record 254 Mt1 reflecting the ramp-up of Jimblebar and productivity gains across the supply chain WAIO unit cash costs2 fell 31% to less than US$19 per tonne for the year, and to U
Slide 14: Coal: profitable in a tough environment
Coal: profitable in a tough environment bhpbilliton resourcing the future Queensland Coal production increased by 13% to a record 43 Mt supported by the ramp-up of Caval Ridge and records at six other operations A reduction in labour, contractor and maintenance costs contributed to a 23% reduction i
Slide 15: Other items affecting profitability
Other items affecting profitability bhpbilliton resourcing the future Other items (US$ million) (3,000) (2,000) (1,000) 0 1,000 FX impact on balance 469 sheet monetary items1 Rig termination costs (123) Underlying Escondida redundancies (188) EBIT Non-exceptional impairments (828) FX impact on net f
Slide 16: Maximising free cash flow
Maximising free cash flow bhpbilliton resourcing the future Free cash flow in FY15 of US$6.3 billion - productivity gains of US$4.1 billion1, two years ahead of target - capital and exploration expenditure2 reduced by 24% to US$11 billion We will continue to maximise free cash flow - further unit co
Slide 17: Our balance sheet is strong
Our balance sheet is strong bhpbilliton resourcing the future Remain committed to our strong balance sheet - our credit rating1 is the strongest in the sector Net debt down by US$1.4 billion to US$24.4 billion Our maturity profile is well balanced with low re-financing risk Our balance sheet provide
Slide 18: Financial results Year ended 30 June 2015
Caval Ridge Financial results Year ended 30 June 2015 Andrew Mackenzie Chief Executive Officer 25 August 2015 bhpbilliton resourcing the future
Slide 19: Emerging economies will drive long-term commodities demand growth
Emerging economies will drive long-term commodities demand growth bhpbilliton resourcing the future Short-term drivers Ongoing economic reforms in China will contribute to periods of market volatility Chinese authorities pursuing ongoing reforms with support for near-term growth Longer-term outlook
Slide 20: Margins for low-cost bulk suppliers remain solid
Margins for low-cost bulk suppliers remain solid bhpbilliton resourcing the future Demand growth for iron ore and metallurgical coal remains attractive, albeit at a slower rate - we expect China’s crude steel production to peak between 935-985 Mt in the mid 2020s - extended life cycle of steel use i
Slide 21: Copper and oil offer significant growth opportunities
Copper and oil offer significant growth opportunities bhpbilliton resourcing the future Copper Growth in global demand remains compelling - ~2.3% CAGR CY15 to CY25 Supply increasingly challenged, primarily due to grade decline Structural deficit expected from CY19 should support higher long-run pric
Slide 22: Delivering solid growth through the cycle
Delivering solid growth through the cycle bhpbilliton resourcing the future We have latent capacity within each of our businesses which lowers the capital intensity of our near-term growth - average returns greater than 40%1 - three concentrator strategy at Escondida - Southern Mining Area at Olympi
Slide 23: We are committed to our progressive dividend
We are committed to our progressive dividend bhpbilliton resourcing the future Our commitment to the progressive dividend remains unchanged - our progressive dividend has withstood previous cycles - the only major not to cut the dividend during the Global Financial Crisis - our progressive dividend
Slide 24: Our unique portfolio will create value and underpin dividends through the cycle
Our unique portfolio will create value and underpin dividends through the cycle bhpbilliton resourcing the future Asset quality and operating performance support margins and cash flow - net operating cash flow of US$17.8 billion and EBITDA margin of 50% - US$4 billion productivity target achieved tw
Slide 25: bhpbilliton resourcing the future
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Slide 26: Appendix
Appendix bhpbilliton resourcing the future
Slide 27: BHP Billiton guidance
BHP Billiton guidance bhpbilliton resourcing the future Group FY16e FY17e Capital and exploration expenditure (US$bn) 8.5 7.0 Cash basis; BHP Billiton share; excludes capitalised deferred stripping and non-controlling interests; includes BHP Billiton proportionate share of equity accounted investmen
Slide 28: BHP Billiton guidance (continued)
BHP Billiton guidance (continued) bhpbilliton resourcing the future Copper FY16e Total copper production (Mt) 1.5 Pampa Norte production is forecast to remain at a similar level to FY15. At Olympic Dam, an increase in full-year production is anticipated following the full ramp-up of the mill at the
Slide 29: Key net profit sensitivities
Key net profit sensitivities bhpbilliton resourcing the future Approximate impact1 on FY16 net profit after tax of changes of US$ million US$1/t on iron ore price 148 US$1/bbl on oil price2 52 US¢10/MMbtu on US gas price 19 US$1/t on metallurgical coal price 25 US¢1/lb on copper price 23 US$1/t on e
Slide 30: Signatures
bhpbilliton resourcing the future SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BHP Billiton Limited and BHP Billiton Plc Date: August 25, 2015 By: /